■Company Overview of San-ki Service <6044>

1. Company Overview

The company provides total maintenance services from design, construction, maintenance management to repair for all equipment such as air conditioning equipment, electricity, kitchen, and water supply and drainage sanitary equipment, with a call center operating 24 hours a day, 365 days a year. Established in 1977 as a manufacturer-designated store of Sanyo Air Conditioning System Service Co., Ltd. (currently Panasonic Production Systems Co., Ltd.), it mainly engaged in maintenance services for large air conditioning equipment, but since 2000 it has shifted its business focus to expand maintenance services to general facilities such as air supply and exhaust equipment, kitchen equipment, electrical equipment, and water supply and drainage equipment. Furthermore, by establishing a 24/7 system, the company has expanded its business by entering total maintenance services for multi-store deployment companies nationwide in Japan. The company is dedicated to environmental improvement centered on total maintenance for facilities that are essential infrastructure for the economy and corporate activities, such as offices/buildings, commercial facilities/chain stores, hotels, hospitals/nursing homes, government agencies/schools.

Major trading partners include Panasonic Production Systems Co., Ltd., Life Corporation <8194>, Seven-Eleven Japan Co., Ltd., OKWA <8217>, Sumitomo Realty & Development Co., Ltd. <8830>, and others.

On June 1, 2020, the founder Yoshikane Nakashima resigned as President and became Chairman, and Tatsuo Kitakoshi was promoted to President. Mr. Kitakoshi has accumulated experience in the company's core business units, such as the large air conditioning equipment division, and has served as the center director of key bases in the Kansai region. Subsequently, he led the IPO as the head of the call center, and since 2013, he has been involved in management as the head of the headquarters management department. He has also led internal and external reforms such as introducing a new core system and strengthening internal controls. In July 2019, the company formulated its first medium-term management plan, "SANKI 2022," followed by the current medium-term management plan, "SANKI NEXT STAGE 2025" in July 2022.

Based on accumulated technology and know-how, the company provides high-quality maintenance services.

2. Business Overview

The company's business concept is 'environmental improvement centered on maintenance,' and it actively proposes preventive maintenance to reduce the occurrence of sudden equipment failures, not just repair responses to equipment failures, to provide comfortable spaces, time, and peace of mind to customers primarily in retail, food and beverage, medical, care, welfare, and facility management industries with multiple stores and buildings. In addition to equipment maintenance, the company supports a wide range of facility operations related to store management, such as facility equipment renewal work, store renovation work, and energy-saving proposals.

The company originally had a single segment of the Maintenance Business, but starting from the end of the third quarter of the May 2024 fiscal year, it consolidated and made a subsidiary of Hyogo Kiko with a full stock swap, resulting in the addition of the 'Construction Related Product Service Business' as a new reporting segment, and changing it into two divisions: the 'Maintenance Business' and the 'Construction Related Product Service Business'. In the Maintenance Business, the company offers 'Total Maintenance' focusing on centralized management of all equipment for multi-store and multi-building businesses, 'Air Conditioning Maintenance' providing maintenance services mainly for air conditioning equipment of customers with multiple stores, 'Facility and Environmental Solution' proposing energy-saving solutions such as energy conservation mainly for schools and hospitals, and conducting design and construction, and 'Maintenance Services' providing maintenance services mainly for large air conditioning equipment in large facilities. In the Construction Related Product Service Business, it manufactures and sells metal doors, shutters, and sashes for various buildings, and installs them.

(1) Total Maintenance

By centrally managing the maintenance of all stores and business locations of customer companies with multiple stores and buildings in one-stop, cost reduction and environmental improvement are achieved. In regular maintenance management, as part of Total Maintenance, inspection focusing on 'preventive maintenance' is carried out on building facilities (air conditioning, electricity, kitchen, fire prevention, water supply and drainage, sanitary facilities, etc.), aiming to prevent accidents and prolong the lifespan of equipment, keeping building equipment in the best condition at all times.

A feature of Total Maintenance is the 24/7 call center support. By always having operators on duty and utilizing a network of about 200 company service engineers, 2,500 cooperating companies nationwide, and various manufacturers, the company provides Total Maintenance to customers. The company has strength in being able to have service engineers handle any type of equipment or manufacturer. Through coordination with a database to understand customer's facility details, not only immediate equipment troubleshooting but also preventive maintenance of equipment can be conducted. Furthermore, by dispatching partner maintenance service personnel to customer stores, the company has established a system to provide maintenance services nationwide, addressing various customer requests. The company's customers include multi-store and multi-building businesses in the retail trade, food service industry, event facilities, and medical, nursing, and welfare facilities.

(2) Air Conditioning Maintenance

Since its establishment, the company has been mainly engaged in maintenance of large air conditioning equipment (mainly absorption-type chillers) as a designated manufacturer service provider for the Panasonic Group. At present, predominantly targeting customers with multiple stores in the retail trade, the company provides maintenance services primarily focused on air conditioning, plumbing, and drainage systems nationwide, regardless of equipment manufacturers. The service also offers 24/7 call center support. It provides repair analysis, proposes repair quantities and cost reductions, and supports management of refrigerant leakage amounts generated by inspection and repair of equipment subject to refrigerant emission control regulations.

(3) Facility and Environmental Solution

It proposes energy-saving, cost-saving, and CO2 reduction solutions primarily for hospitals and schools, providing design, construction services. Energy specialists diagnose customer building facilities, clarify issues, and propose various specific measures such as equipment selection and improvement metrics needed to resolve them. It also offers information on grants leading to energy and cost savings, handles new installation, renovation projects for air conditioning equipment, and improvement proposals. In addition, it provides support for electrical work related to facility equipment and improvement proposals for electrical facilities.

Maintenance service (4)

We provide maintenance support for various equipment from various manufacturers, including overseas product manufacturers. Specialized engineers also handle maintenance for overseas product manufacturers. Major operations include outsourcing of manufacturer's front office operations, establishment of equipment maintenance systems, alliance operations with the manufacturer's Japanese subsidiary, and outsourcing of equipment technical documentation creation tasks.

The company accumulates and manages all information generated at each customer's store or facility in its own unique web database, significantly reducing emergency responses by analyzing historical data. This leads not only to maintenance cost reduction, but also eliminates profit losses such as opportunity costs, enhancing cost-saving effects.

As an example of introducing maintenance services for overseas manufacturers, the company responds to maintenance services for food service equipment and coin-operated laundry equipment of Electrolux＜ELUX＞, a leading home appliance company based in Sweden, Scandinavia. The company provides technical consultations and remote support for technical issues from nationwide distributors and end users. In cases requiring on-site repairs, the company utilizes a nationwide service network to conduct on-site repairs as quickly as possible.

(Writer: FISCO analyst Tomoichi Murase)